Scribd
Upload
25 views6 pages

CH 12 Regression and Correlation

This document discusses regression and correlation analysis. It explains that regression analysis is used to predict one variable from another by developing an estimating equation that relates known variables to unknown variables. The regression line is a line fitted to data points to estimate the relationship between two variables, using the least squares method to minimize the vertical distance between data points and the line. Regression and correlation analyze the relationship between an independent variable and a dependent variable we aim to predict. The regression line can then be used to estimate values of the dependent variable based on the independent variable.

Uploaded by

Syed Naseeb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
25 views6 pages

CH 12 Regression and Correlation

This document discusses regression and correlation analysis. It explains that regression analysis is used to predict one variable from another by developing an estimating equation that relates known variables to unknown variables. The regression line is a line fitted to data points to estimate the relationship between two variables, using the least squares method to minimize the vertical distance between data points and the line. Regression and correlation analyze the relationship between an independent variable and a dependent variable we aim to predict. The regression line can then be used to estimate values of the dependent variable based on the independent variable.

Uploaded by

Syed Naseeb
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 6

Chapter 9: Regression and

Correlation
Dr. Jameel Ahmed
Institute of Management Sciences
University of Balochistan, Quetta
Introduction
• Relationship between variables
– Every day, managers make personal and professional
decisions that are based on predictions of future events.
– To make these forecasts, they rely on the
relationship(intuitive and calculated) between what is
already known and what is to be estimated.
– If decision makers can determine how the known is related
to the future event, they can aid the decision-making
process considerably.
– That is the subject of this chapter, how to determine the
relationship between variables.
Introduction
• Difference between Chi-square and
Regression/Correlation
– Chi-square tests of independence is used to
determine whether a statistical relationship existed
between two variables.
• The chi-square test tells us whether there is such a
relationship, but it does not tell us what the relationship is.
– Regression and correlation analyses show us how to
determine both the nature and the strength of a
relationship between two variables.
Regression, Regression Analysis, Regression
Line
• Regression is the general process of predicting one variable
from another by statistical means, using previous data.
• In regression analysis, we shall develop an estimating
equation – that is, a mathematical formula that relates the
known variables to the unknown variables.
• Regression line is a line fitted to a set of data points to
estimate the relationship between two variables.
• Least-square method is a technique for fitting a straight line
through a set of points in such a way that the sum of the
squared vertical distance from the n points to the line is
minimized.
Types of Relationships
• Regression and correlation analyses are
based on the relationship, or association
between two (or more) variables.
• The know variable (or variables) is called the
independent variable(s).
• The variable we are trying to predict the
dependent variable.
Estimation Using the Regression Line

• Method of Least Squares


• The Estimating Line

• The Slope of the Best-Fitting Regression Line

• Y-intercept of the Best-Fitting Regression Line

You might also like